Egyptian banker Karim Awad leads EFG Hermes in $12.5-million debt issuance for HSB

Yusuf Abdulfatai -

EFG Hermes Holding, a leading financial services group in the MENA region led by Egyptian banke Karim Awad, successfully closed a senior unsecured short-term note issuance of EGP600 million ($12.54 million) for its subsidiary, Hermes Securities Brokerage Company (HSB).

The issuance marks a significant milestone for EFG Hermes, representing its fifth such issuance and the second within a pre-approved EGP2 billion ($41.8 million) program. Middle East Ratings and Investor Services (MERIS) reaffirmed HSB’s strong financial position with a “BBB+” long-term and “P2” short-term issuer rating.

The 12-month note features a variable rate coupon with semi-annual payments, aimed at diversifying HSB’s funding sources and strengthening its financial position.

EFG Hermes leverages expertise for subsidiary

Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, highlighted the issuance’s success. “This closure underscores our ability to support Group companies like HSB in raising capital within the Egyptian Debt Capital Market (DCM),” El Ayouti said. He emphasized EFG Hermes’ role as a pioneer in the MENA DCM space, offering innovative solutions that attract investors.

HSB’s issuance builds on EFG Hermes’ recent DCM triumphs. The investment banking division recently facilitated a series of noteworthy deals, including a securitized bond valued at EGP421 million ($8.79 million) for Palm Hills Developments, issuances for Qasatli EGP159.2 million ($3.33 million), Egyptian Mortgage Finance Company (EMRC) EGP472 million ($9.86 million), and Bedaya Mortgage Finance EGP958 million ($20.02 million).

EFG Hermes maintains market leadership

EFG Hermes, a financial services conglomerate operating across the Middle East, North Africa, Sub-Saharan Africa, and South Asia, continues to dominate in securities brokerage, asset management, investment banking, private equity, and research under Awad’s leadership.

Awad’s guidance has fueled impressive financial performance. EFG Hermes reported a net profit after tax and minority interest of EGP2.5 billion ($52.24 million) for full-year 2023, with record revenues of EGP14.7 billion ($307.57 million), a 34-percent year-on-year increase. The group’s total assets stood at a robust EGP121.9 billion ($2.55 billion) as of December 2023.